Given the state of the global oil markets and the unlikelihood that islanded communities will be able to take advantage 

of low natural gas prices, wind development in these areas provides a strong market niche for the industry.

NREL is a national laboratory of the U. S. Department of Energy, Office of Energy Efficiency

and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

WIND ENERGY DEPLOYMENT IN ISOLATED ISLANDED 

POWER SYSTEMS: CHALLENGES & REALITIES Ian Baring-Gould 

May 5-8, 2014 • PO-5000-61253 

Rising fuel costs, energy surety, and the carbon impacts of diesel 

fuel are driving remote and islanded communities dependent on 

diesel power generation to look for alternatives. Over the past few 

years, interest in using wind energy to reduce diesel fuel 

consumption has increased dramatically because of wind’s potential 

economic, environmental, and security benefits to these 

communities. However, the task of implementing such systems has 

remained elusive and subject to lower-than expected performance. 

This poster outlines the current status of integrating higher 

contributions of wind technology into islanded power systems and 

some of the lingering technical and commercial challenges. 

Operating experience from a number of power systems will be 

described, as well as how organizations considering wind should 

implement development programs.

The information contained in this poster is subject to a government license.

AWEA WINDPOWER

Las Vegas, Nevada

May 5–8, 2014

NREL/PO-5000-61253

Introduction

The market for wind-diesel technologies is expanding.

• Twenty-six projects are operating or under construction in Alaska.

• There are operating projects in almost every region of the world, representing 

diversity in technical and business approaches.

• Reducing diesel dependence in isolated grids is becoming an accepted option, 

with more interest from larger multi-lateral donor and banking organizations.

• Larger islanded communities, such as in the Pacific and Caribbean, are more 

interested in wind projects and now have deployment experience.

• In general, there is more interest worldwide in these projects.

• The U.S. Department of Defense is increasingly considering micro-grid 

applications.

In Alaska:

• Approximately 134 communities have an economically viable wind potential.(1)

• Low- to medium-contribution power systems have been successfully 

implemented; new higher-contribution systems are beginning to be implemented.

• Alaskan communities now have experience installing and interconnecting larger 

wind turbines.

• The state Renewable Energy Fund helps to finance remote wind projects, 

providing grants to reduce the high initial cost of wind turbine installation in remote 

communities.

• The University of Alaska, Alaska Center for Energy and Power has conducted 

research and developed educational programs around wind-diesel systems.

Deployment in Alaska and elsewhere has provided important lessons for 

using wind in isolated power systems. Initial findings include:

• Projects can be expensive. Costs as high as $17 per Watt have been reported for 

small (100-kW) installations with complicated or expensive foundations (including 

integration). Lower costs have been documented for larger or reconditioned equipment, to 

$4.5 per Watt.

• Diesel plant ramp rates are important. The importance of diesel ramping and 

the need for energy storage, especially in larger grids, are now better understood.

• Many projects report poor performance compared to modeled 

predictions. Many projects are reporting much lower performance than was projected 

using simulation models, with some projects reporting approximately 60% of predicted 

performance. Factors resulting in lower performance than projections include:

• Poor resource assessment and underestimation of harsh conditions (limited data, 

low-measurement tower heights, icing conditions, and other climate impacts)

• Poor system modeling, including lack of information on local performance parameters 

leading to faulty predictions

• Few qualified people to implement and manage projects

• Long contracting and deployment timelines that result in insufficient funds at the end 

of project implementation to allow for fine-tuning of system operation

• Lack of ongoing technical assistance and R&D to support projects

• Use of new, untested technologies and systems in remote communities.

• High turbine availability can be achieved. Some wind turbines have operated 

at excellent availability levels, even if plant performance was not as high as expected.

• Lack of corporate longevity is an issue. Many of the companies providing 

products and services for the wind-diesel market do not have the financial resources to 

address protracted technical problems.

• Environmental regulations can limit potential project sites. Especially in 

islanded communities with protected or endangered species, finding locations for turbine 

installations can be problematic.

• Diesel plant advances improve low-load diesel operation. Improvements 

in diesel generators and power electronics make low-load diesel operation more 

acceptable, reducing cost and improving control flexibility. The application of diversionary 

loads, even in lower-contribution power systems, is still important for proper control. 

• Expanded testing infrastructure will allow improved system 

development. Expanded testing infrastructure (including the Alaska Center for Energy 

and Power test bed, the Energy Systems Infrastructure Facility at NREL, and the multimegawatt isolated test facility at the National Wind Technology Center) will provide a 

variety of test platforms, which will allow equipment and control testing of isolated power 

systems and equipment from a few kilowatts to a few megawatts.

The following technology advances can improve the application of smaller 

remote systems:

• Deployment of more advanced power control, typically in the form of secondary dispatchable

loads, allows for an increased wind energy contribution.

• Expanded load-control concepts and distributed load control may allow increased wind 

contribution. Many are being considered by organizations such as the Chaninik Wind Group, 

including household electric heating using thermal stoves and electric or hybrid electric vehicles.

• Expanded use of medium- to large-scale turbines for remote applications (such as the installation 

of two EWT 900-kW turbines in Kotzebue, Alaska, in 2011) can improve applications for smaller, 

remote systems.

• Advances in software models  which expand capabilities in resource assessment, performance, 

control, and electrical response  have improved our understanding of wind-diesel systems.

• Expanded development of smart and microgrid concepts can spur technology innovation.

• New ownership models, including power purchase agreements, can be applicable even for 

smaller, isolated projects.

• Improved access to wind resource information, including new assessment techniques and easyto-implement remote sensing technology, allow better assessment of local wind resources.

• Improved power performance and lower cost of wind and power conversion technology allow for 

more widespread applications.

Three of six GE 1.5-MW wind turbines installed on a ridge above Kodiak, Alaska, as part of a hydrowind-diesel power system that provides more than 95% of the community’s electrical energy from 

renewable energy sources. Photo by Ian Baring-Gould, NREL 29181

One of three Enercon E-33, 300-kW wind turbines installed as part of the 

Ross Island Wind Farm, providing power to the McMurdo and Scott Antarctic 

Research Stations as part of a medium contribution wind-diesel power 

system commissioned in 2010. Photo by Ian Baring-Gould, NREL 29393

Alaska Village Electric Cooperative installed three 100-kW Northern Power 

Systems turbines in November 2006 as part of a wind-diesel hybrid 

system. Two of three wind turbines can be seen in this photo over the 

bulk fuel tanks of the Kasigluk Power System. Photo by Ian Baring-Gould, 

NREL 16097

Implementation of Wind in Large Islanded Grids

Experiences from deployments in larger islanded grids include 

the following(4):

• Developing projects through competitive power purchase agreements requires 

much greater engagement and oversight than conventional wind projects

• Developing power purchase agreements that include integration costs, system 

impacts, performance liability, and forced curtailment is much more complex 

than standard wind contracts. Some contracts place these liabilities on the wind 

supplier and others on the utility. Although both are viable, they can greatly 

impact performance and project economics.

• System-wide integration studies are likely needed as part of the initial project 

development process for any large project on an isolated grid. Companies with 

proven experience in islanded power systems must be employed to model 

system impacts if credible, real-life results are to be expected.

• The need for on site energy storage or other technologies to provide grid 

stability, power smoothing, and thermal unit ramp rate control must be traded 

against the ability of the existing power system to provide these services.

• To the extent possible, wind power forecasting should be employed.

• The interconnection of islanded communities, even through the use of undersea 

cable, should be seriously considered. However data on the actual performance 

of these systems is limited.

Lingering Industry Challenges

Many challenges continue to hamper the growth of wind 

technology deployment in isolated grids, including(5):

Technical

• Tailored, unique solutions for each community leading to customized 

engineering, equipment, controls, and construction with little uniformity or 

commonality among systems

• Limited institutional track record limiting the up-take of higher-contribution power 

systems

• Limited common terminology or general agreement on even basic terms

• No common understanding of accurate performance metrics

• Very limited funding for technology development resulting in development being 

funded on the back of specific deployment projects

• Even less funding for follow-up, evaluation, impact assessment, and technology 

improvement

• High and undocumented installation and operation expenses

Institutional

• Poor understanding of the technology by decision makers

• Lack of trained personnel; lack of trained personnel in communities

• Potential environmental impacts, including habitat reduction, especially in 

isolated areas which may have unique species

• Competing use, siting, or other development concerns, typically in constrained 

geographic areas

• No coordinated outreach, targeted industry or users group, or expanded 

communications network

Policy

• High capital cost and general discounting of community sustainability

• Perceived risk and associated higher financial costs

• Subsidized fuel markets and a lack of consideration of environmental impacts

• Complicated, costly, and multi-jurisdictional permitting processes

• Lack of regional implementation approaches

• Risk-averse culture that continues to suppress wind contribution levels.

The tower of the wind turbine installed at St. Croix Reformed Church and 

Kingshill School can be hydraulically raised or lowered depending on 

weather conditions. Photo from Don Buchanan, NREL 20816

Current Markets

Recent Experience from Wind-Diesel Deployments

In Canada:

• There is a potential 30 to 85 MW 

of wind capacity in large 

communities and mines with 

loads greater than 10 MW, with a 

potential diesel savings of 25 

million to 120 million liters per 

year.(2)

• There is a potential 30 to 130 MW 

in smaller communities with loads 

less than 10 MW, with a potential 

diesel savings of 16 million to 77 

million liters per year.(2)

• The Canadian Wind Energy 

association has identified 34 

communities where wind energy 

could reduce the cost and 

environmental impact of a dieselbased energy supply.(3)

References:

1. Alaska Energy Authority and Alaska Center for Energy and Power. (January 2009). Alaska Energy: 

A First Step toward Energy Independence 

2. Weis, T. (April 2008). Emerging Wind-Diesel Markets – Canada. The Pembina Institute

3. Canadian Wind Energy Association. WindVision 2025 – Powering Canada’s Future. Available at 

www.canwea.ca/windvision_e.php

4. Miller, M.; Voss, P.; Warren, A.; Baring-Gould, I.; Conrad, M. (2012). Strategies for International Cooperation in Support 

of Energy Development in Pacific Island Nations. 45 pp.; NREL Report No. TP-6A20-53188

5. Baring-Gould, I.; Dabo, M. (2009). Technology, Performance, and Market Report of Wind-Diesel Applications for Remote 

and Island Communities: Preprint. 15 pp.; NREL Report No. CP-500-45810